Xubuntu - how to restore "default" terminal text coloring
Solution 1:
cp /etc/xdg/xdg-xubuntu/xfce4/terminal/terminalrc ~/.config/xfce4/terminal/
Solution 2:
I guess digging a bit more did the trick:
https://github.com/sgerrand/xfce4-terminal-colors-solarized
~/.config/Terminal/terminalrc is responsible for the color settings that can be easily customised.